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2013 (3) TMI 375 - HC - Income TaxAdjustment of Refund with Tax Demand of a Group company - as per dept. the amount refundable to the petitioner has been adjusted towards the demand of M/S Narain Properties Ltd., the Mall, Kanpur a group of company of assessee - Held that:- As per Section 245 where any refund is due to any person, the Income-tax authorities may set off the amount to be refunded against any sum remaining payable under the Act by the person to whom refund is due, after giving him an intimation in writing to such person. Thus Section 245 authorizes for set off the refund against the dues of the same person that too after giving notice to him which is mandatory as held in Heera Lal and sons Vs. Income Tax Officer (1983 (2) TMI 5 - ALLAHABAD HIGH COURT) and Pradeep Kumar Harsaran Lal Vs. Assessing Officer (1997 (3) TMI 62 - ALLAHABAD HIGH COURT) There is no provision which authorizes Income-tax authorities to set off the refund of a person against the dues of another person. The petitioner was not given any notice nor he ever gave his consent for set off against the dues of M/S Narain Properties Ltd. The record shows that the petitioner has consistently made representations for his refund to the various authorities and had made all efforts from pillar to post. Action of the respondents in avoiding the refund of the petitioner is most arbitrary. The step of setting off the refund towards dues of another person without intimation to the petitioner is illegal and without jurisdiction. - Thus refund along with interest allowed up to date at the rate given under Section 244A (1) (a) to the petitioner within a period of one month from the date of production of a certified copy of this order before AO - in favour of assessee.
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